International brands were returning to mainland cities, property consultants Knight Frank said. And as sales emerged from last year's trough, the expansion trend was expected to continue this year, it said.
Louis Vuitton and Ermenegildo Zegna will both open flagship stores in Lippo Plaza on Huaihai Road, Shanghai, while Qianmen Street in Beijing - a historic district which reopened last year after a makeover - has attracted international brands such as H&M, Starbucks, Swatch and Nike. International brands now account for about 30 per cent of the retailers in the Qianmen area.
In Guangzhou, where the Asian Games will be held in November, a number of international brands, including Marks & Spencer, will launch their first stores in the city.
Demand for retail space was robust in major mainland cities, thanks to the increase in domestic demand and optimistic market sentiment, Knight Frank said.
The vacancy rate of prime retail space in Beijing fell to 10.8 per cent in the first three months of this year from 14.2 per cent in the previous quarter, while the rate in Guangzhou dropped from 4.5 to 4 per cent.
But the average vacancy rate in Shanghai's core retail areas rose from 6 to 8 per cent in the first quarter due to a vast supply of new retail space.
